Friday, January 9, 2009

Supertanker Freed After Ransom Was Paid, Pirates Say

Update below.
From the New York Times:
A Saudi-owned supertanker held by pirates off the coast of Somalia for two months has been released for a ransom of $3 million, according to one of the pirates and residents of Harardhere, a pirate town on the Somali coast near where the tanker was being held.

The supertanker, about the same length as an American Nimitz class aircraft carrier, was the largest ship known to have been seized by pirates, and it was fully loaded with two million barrels of oil.

The pirates were due to leave the ship after the money, paid by the ship’s owners, was received by the pirates on Friday, according to the pirates and residents, who later said that the ship had moved away from the coast where it had been anchored since November.

News agencies had reported that the pirates had originally asked for $25 million in ransom for the fully-laden oil tanker, known as the Sirius Star, but ”they have agreed on $3 million and the pirates will disembark tonight,” a pirate in Harardhere who gave his name as Jama said....MORE
Crude oil closed at $57.04 on November 14, the night before the Sirius Star was seized, versus today's $40.14, giving the owners an additional $35 million hit.
The Somali oil traders may have just wanted to unload a depreciating asset.

Update: I know it was Saudi crude and I used Nymex prices. Pretty quick with the email Mr. oil trader. Jeez.